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Re: wickw50 post# 201973

Wednesday, 09/13/2006 10:33:46 AM

Wednesday, September 13, 2006 10:33:46 AM

Post# of 286611
OT Thanks again wick, sent gave me some beta info. then sent me to investopedia which I should have gone to in the first place. Sharing it here just in case kol and others may still be wondering and so the question need never be asked here again.

"A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole.

Also known as "beta coefficient".

Beta is calculated using regression analysis, and you can think of beta as the tendency of a security's returns to respond to swings in the market. A beta of 1 indicates that the security's price will move with the market. A beta less than 1 means that the security will be less volatile than the market. A beta greater than 1 indicates that the security's price will be more volatile than the market. For example, if a stock's beta is 1.2, it's theoretically 20% more volatile than the market.

Many utilities stocks have a beta of less than 1. Conversely, most hi-tech Nasdaq-based stocks have a beta greater than 1, offering the possibility of a higher rate of return but also posing more risk."